US embassy cable - 05TAIPEI2063

C O N F I D E N T I A L SECTION 01 OF 03 TAIPEI 002063 
 
SIPDIS 
 
STATE PASS AIT/W 
 
E.O. 12958: DECL: 05/06/2015 
TAGS: PGOV, PREL, CH, TW, Cross Strait Economics, Cross Strait Politics 
SUBJECT: KMT CHAIRMAN LIEN CHAN ON HIS HU JINTAO MEETINGS 
 
Classified By: AIT Director Douglas Paal, Reason(s): 1.4 (B/D) 
 
1. (C) Summary:  In a May 6 meeting, KMT Chairman Lien Chan 
told the AIT Director that he met with PRC President Hu 
Jintao four times during his April 29 visit to Beijing.  Lien 
said that he and Hu talked at length at two of the four 
meetings.  At a closed door meeting between Lien and Hu along 
with their close advisors, the two sides agreed to pursue 
peace and security confidence building measures, and a 
mechanism for economic cooperation and to convene separate 
forums for economic and political exchanges twice annually. 
Lien said that at a pre-dinner discussion Hu offered to 
permit PRC tourists to visit Taiwan and to permit 15 
categories of fruit imports from Taiwan without duty. He then 
offered to send PRC pandas to Taiwan.  Lien said that he was 
able to be positive about the prospect of PRC tourists 
visiting Taiwan and Taiwan fruit going to the PRC, but he had 
to be cautious about pandas because many authorities on 
Taiwan would need to approve.  He said he was optimistic they 
would eventually be approved.  Lien told the Director that he 
did encourage Hu to pursue dialogue with Chen Shui-bian but 
that Hu did not respond positively or negatively.  Lien noted 
that Hu said the PRC would continue to be mindful of Taiwan's 
quest for more international space and would pursue 
confidence building measures proposed by the KMT, but beyond 
that there was no detailed discussion.  Lien also noted that 
they did not touch on sensitive issues such as the missiles 
targeted at Taiwan, the "1992 Consensus," or the Special 
Defense Budget.  End Summary. 
 
Behind Closed Door with Hu Jintao 
--------------------------------- 
 
2. (C) In a May 6 meeting, KMT Chairman Lien Chan told the 
AIT Director that he met with PRC President Hu Jintao four 
times during his April 29 visit to Beijing -- at a televised 
formal reception, during a closed door discussion, at a 
pre-dinner talk, and during the scheduled dinner.  Lien said 
that the most substantive discussion took place during the 
closed door meeting between Lien and Hu along with their 
close advisors.  Although originally scheduled for forty 
minutes, Lien said, the meeting continued for one hour and 
forty minutes.  Characterizing his exchanges with Hu as 
"frank, natural, and friendly," Lien said that they started 
by talking about the present rather than the past, then 
focused on the future.  Lien said he told Hu that both Taiwan 
and China should work together to halt the "vicious circle of 
tension between the two sides that started in 2000," and that 
he praised Hu for starting the search for peace this March by 
inviting Taiwan opposition leaders to visit China.  Lien said 
he explained to Hu the "special circumstance" of Taiwan's 
experience of having been colonized.  Given the pioneering 
spirit of the Taiwanese people, he told Hu, the negative 
colonial experience left a deep sense of sorrow and tragedy 
(bei-qing) in the Taiwanese psyche.  Lien said that Hu 
responded pointedly and said, "Since you have drawn attention 
to this issue, we will be especially cognizant of the issue 
and endeavor to understand it" (quanxin gen liaojie). 
 
3. (C) Lien said that he then expressed hope that the KMT and 
Chinese Communist Party (CCP) can establish a platform to 
continue their dialogue.  Noting that Hu responded favorably 
to his statement, Lien stressed the importance of this 
agreement given the long absence of dialogue between the PRC 
and the Taiwan authorities.  Lien pointed out that while the 
KMT was an opposition party, the CCP was not.  Lien told the 
Director that he proposed four ideas to Hu, and Hu responded 
favorably to all of them -- peace and security confidence 
building measures, economic cooperation, a forum for economic 
exchange, and a mechanism for economic cooperation. 
 
Peace and Security Confidence Building Measures 
--------------------------------------------- -- 
 
4. (C) Lien told the Director that the KMT and CCP agreed to 
undertake confidence building measures in order to work 
toward a peace agreement between Taiwan and the PRC.  Lien 
said that the discussions involved a general commitment 
toward peace and security and that neither he nor Hu raised 
any contentious issues or any specific problem areas such as 
the missiles targeted at Taiwan, the "1992 Consensus" (the 
formula of "One China, with different interpretations"), or 
the Special Defense Budget currently before the Taiwan 
legislature.  Arguing that it was more important for the two 
party's leaders to achieve mutual recognition of shared 
goals, Lien said, "in politics and diplomacy, we need some 
ambiguity." 
 
5. (C) Lien noted that he separately told Jia Qinglin that 
the KMT has "certain reservations" about the Anti-Secession 
Law recently promulgated by the PRC.  Lien said that he told 
Jia that the rise of Taiwan consciousness does not 
necessarily mean support for Taiwan independence and that all 
Taiwanese should not be forced to suffer the consequences of 
a pro-independence ideology of a small minority.  Lien 
emphasized to the Director the importance of recognizing all 
the good will the PRC had expressed since passage of the 
Anti-Secession Law. 
 
Economic Issues 
--------------- 
 
6. (C) Regarding economic cooperation, Lien told the Director 
that Hu said the "Twelve Points" to which the PRC agreed 
during KMT Vice Chairman P.K. Chiang's visit still stand and 
that he hoped Taiwan will do all it can to facilitate the 
agreements. Lien said that the KMT and CCP also agreed to 
convene meetings annually to exchange views on economic and 
political issues, with one on each topic every year with 
alternating venues, thus a KMT-CCP meeting every six months. 
They would invite scholars, business leaders, and officials 
from other political parties.  Finally, Lien told the 
Director that he proposed to Hu a "common market" -- an idea 
originally promoted by former KMT Vice Chairman Vincent Siew 
but rejected by the PRC -- as an economic cooperation 
mechanism.  Lien explained that he had reintroduced the 
"common market" idea because he realized that the PRC would 
not accept a Free Trade Agreement (FTA) and that Chen 
Shui-bian would not accept the Hong Kong-style Closer 
Economic Partnership Agreement (CEPA).  A common market, he 
explained, "is wide enough to cover all that we wanted and 
can always be defined to exclude what we do not want."  Lien 
told the Director that Hu accepted the concept in the end, 
noting it took the European Union fifty years to implement 
its common market. 
 
Hopes for Government to Government Contact? 
------------------------------------------- 
 
7. (C) Lien told the Director that Hu mentioned the issue of 
Taiwan participation in the World Health Assembly (WHA) but 
noted that this would require negotiation with official 
Taiwan authorities.  Nevertheless, Lien told the Director, Hu 
said he had already asked his PRC officials to approach the 
WHA Secretariat to find a way for Taiwan medics and medical 
scholars to participate and share their expertise, Lien 
reported to the Director.  When the Director asked if the PRC 
will insist on Taiwan participating under the nomenclature 
"Taiwan, China," Lien replied that Hu told him he was willing 
to discuss the issue.  Lien said he believes the nomenclature 
"Chinese Taipei" should work.  He lamented, however, that 
Chen Shui-bian is always looking for symbolic victories 
rather than gaining substantive progress in participation in 
international organizations. 
 
8. (C) Lien told the Director that he emphasized to Hu that 
he, as a private citizen, could only do so much.  In order for 
there to be more progress toward peace between Taiwan and the 
PRC, Hu and Chen Shui-bian should pursue dialogue.  Lien said 
that Hu did not say yes or no to the proposal.  Lien said 
that Hu told him the PRC would continue to be mindful of 
Taiwan's quest for more international space and would pursue 
confidence building measures as proposed by the KMT, but 
beyond that there was no further discussion. 
 
9. (C) Lien said the secretaries general of the KMT and the 
Taiwan Presidential Office have already talked by telephone 
and repeated to the Director his public comments that he has 
not ruled out the possibility of talking to Chen Shui-bian. 
Evidently posturing to avoid becoming a demandeur, Lien said 
that so far nothing has been decided about meeting with Chen. 
 
Tourists, Fruit, and Pandas 
---------------------------- 
 
10. (C)  Lien told the Director that he and Hu had another 
chat prior to their formal dinner.  Lien said that at that 
meeting Hu mentioned there were two gestures that the PRC 
could take unilaterally to express good will toward Taiwan. 
According to Lien, Hu said the PRC would permit PRC tourists 
to visit Taiwan and 15 categories of Taiwan fruit to be 
exported to the PRC without tariff.  Lien said that after the 
discussion on tourists and fruit "came the pandas."  He said 
he thanked Hu but told him that pandas going to Taiwan will 
take some time to work out.  Lien pointed out that many 
Taiwan cities are already competing to receive the pandas. 
Lien noted that Taipei City Mayor Ma Ying-jeou has said that 
he is ready, but Lien said the issue should also be discussed 
with Taichung and Kaohsiung.  Lien also noted to the Director 
that Taiwan environmentalists with a political agenda might 
challenge the idea of pandas coming from the PRC. 
PAAL